Enter the total loan amount ($) and the construction cost ($) into the Loan to Cost Calculator. The calculator will evaluate and display the Loan to Cost.

## Loan to Cost Formula

The following formula is used to calculate the Loan to Cost.

LTC = LA / CC

• Where LTC is the Loan to Cost ($/$)
• LA is the total loan amount ($) • CC is the construction cost ($)

## How to Calculate Loan to Cost?

The following example problems outline how to calculate Loan to Cost.

Example Problem #1:

1. First, determine the total loan amount ($). The total loan amount ($) is given as 50,000.
2. Next, determine the construction cost ($). The construction cost ($) is provided as 100,000.
3. Finally, calculate the Loan to Cost using the equation above:

LTC = LA / CC

The values given above are inserted into the equation below:

LTC = 50000 / 100000  = .50 ($/$)

Example Problem #2:

The variables needed for this problem are provided below:

total loan amount ($) = 30,000 construction cost ($) = 100,000

Entering these values and solving gives:

LTC = LA / CC  = .30 ($/$)